Big news on Wednesday were for Crocs, which rose 11% after overcoming Wall Street’s expectations, Urban Outfitter’s that resented from the resignation of Glen Senk as CEO and Delta Apparel’s earning cut alert for second quarter fiscal 2012.
Crocs Inc. shares rose 11% after the known shoe maker forecast fourth-quarter revenue that outsmarted consensus Wall Street's expectations. The day after, Crocs was up 13% to $18 per share. Market Watch explained that thanks to the company’s forecasted fourth-quarter revenue to come in at the high end of the footwear maker’s previously forecast range of $200 million to $205 million, the retailer would be able to go back on track to surpass the $1 billion mark on annualized basis for the first time this year.
Opposed case was the one of Urban Outfitters', which shares dropped 19% after Citi Investment Research downgraded the clothing retailer just one day following the resignation of its CEO.
As reported by Bloomberg, Urban Outfitters Inc. fell the most in three years after saying Glen Senk resigned as chief executive officer and that co-founder Richard Hayne would take over to try to reverse the retailer’s yearlong profit decline. It must be recalled that the company’s stock dropped 23 percent last year. Urban Outfitters said Tuesday in a statement that Senk will remain with the company to assist with the transition towards Hayne, 64, who helped start the company in 1970 and has been chairman since it was incorporated six years later, Urban Outfitters said. On midday trading Wednesday. Urban Outfitters' was down near 18 percent to just over $24 per share.
Finally, Wednesday saw Delta Apparel under the limelight, as the retail group announced that, due to record high cotton prices combined with selling price discounts, it will take a one-time markdown of inventory of approximately $16 million in its fiscal 2012 second quarter, which will be reported on January 26, 2012. The action will negatively impact second quarter earnings by approximately $1.20 per share, the company advanced in a statement.
The Company is taking the entire amount of the markdown in the second quarter to put it cleanly behind us, giving us the rest of the year to focus on our goals for 2012 and 2013. This action, along with the effect of lower selling prices in the second quarter, will reduce our guidance for our full 2012 fiscal year. We now anticipate that 2012 revenue will be in the $480 million to $500 million range and that earnings will be in the range of $0.50 to $0.60 per diluted share for the year,” warned Robert W. Humphreys, Delta Apparel’s Chairman and Chief Executive Officer.